Australian banks

MacroBusiness covers Australian banks from the perspective of their macro-economic role, as political economy actors, as investment propositions and in terms of financial stability and capital adequacy. Australian banks have played a crucial role in inflating the Australian property bubble, exist within an utterly privileged position as “too big to fail” institutions and operate within a deeply distorted financial architecture that has Australian tax payers well and truly on the hook in the event of trouble. MacroBusiness seeks to define this role for investors as well as change it in the name of the Australian national interest.

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The big Australian short is going to win this time

From Gotti today: The great bear raid on Australian banks continues. Someone is going to be wrong. The global hedge funds say that Australian bank chief executives and boards are misleading the market and their shares are headed for a big fall, which will almost certainly send Australia into recession. But “mum-and-dad investors”, the so-called

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Goldman on the end of Australia’s monetary ammo

Welcome to the great Australian funding squeeze. From Goldman: Our macro team has recently reinstated their view that the Reserve Bank of Australia (RBA) will cut cash rates two more times in CY16 (Australia and New Zealand Economics Analyst: Forecast Change: Why the RBA will cut again, February 18, 2016). In this piece we undertake

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Macquarie drags taxpayers on global junk binge

Chris Joye has unearthed a spectacular story on Macquarie Bank that leaves one breathless vis Australian prudential oversight: In a February briefing Macquarie revealed that since Brazil established his new group, Corporate and Asset Finance (CAF), in 2009 the bank had invested an astonishing $33 billion in around 500 high yield loan exposures (including $1 billion into

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APRA soothes on mortgage risks

By Leith van Onselen Heidi Richards, APRA’s General Manager of Industry Analysis, has delivered a speech today entitled A Prudential Approach to Mortgage Lending, which delves into Authorised Deposit-Taking Institution’s (ADIs) mortgage lending and finds that Australia’s ADI’s have significantly improved their risk management practices. Below are the key extracts: Why has APRA committed so

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Specialist Chinese-language mortgage broker lists

From Banking Day: Specialist Chinese-language mortgage broker N1 Loans has closed its initial public offering, raising equity capital of A$5 million, and will list on the Australian Securities Exchange on March 18. N1 plans to use the proceeds of the float to help invest in a more prominent online presence and increase its marketing activity.